Compare mortgage rates in Virginia.

Introduction to Mortgage Interest Rates

When it comes to securing a home loan, comparing interest rates is important to save money over the life of the loan. Even a slight difference in interest rate can result in significant savings — or added costs.

The interest rate charged on mortgages is a bit of a moving target — a reflection of the current economic climate and the borrower’s financial profile. Lenders assess numerous variables to determine the risk associated with lending money, and this directly influences the interest rate offered to borrowers.

Get ready for a deep dive into mortgage rates: how they’re set, historical trends, and tips for getting the lowest available rate.

Where Do Mortgage Rates Come From?

Whether you’re buying your first home or a long-time real-estate enthusiast, few people know how mortgage rates come about. The Federal Reserve, also known as the Fed, sets the short-term interest rates that banks use. While home loan rates are not directly tied to Fed rates, they tend to follow similar economic trends. When the Fed raises short-term rates, it often signals a tightening of the money supply, leading to higher borrowing costs across the board, including mortgages.

On the flip side, when the Fed lowers interest rates, it stimulates economic activity and makes borrowing more affordable, which can positively impact mortgage rates.

How Interest Rates Affect Home Affordability

Mortgage rates have a more significant impact on home affordability than many people realize. Even small changes in interest rates can make homeownership unattainable for middle-income Americans. For instance, a 1.00% increase in the interest rate on a $405,300 median-priced home can add over $130 to a monthly mortgage payment. This really adds up over the long term, with borrowers paying an additional $47,000+ by the end of a 30-year mortgage.

Should Homebuyers Wait for Interest Rates to Drop?

Many first-time homebuyers face the dilemma of whether to buy now or wait for interest rates to come down. While it’s tempting to wait for a more favorable interest rate environment, consider the opportunity cost of delaying homeownership. Waiting for rates to drop means missing out on potential home appreciation and the ability to build equity.

And don’t forget: Homeowners can always take advantage of a mortgage refinance after rates come down.

Virginia Mortgage Rate Trends

Examining historical mortgage rate trends can offer valuable clues about future rate movements. While rates have risen in recent years, they remain below historical highs. In fact, current rates are hovering around the 50-year average. And as the table below shows, mortgage rates in Virginia run pretty close to the national average, sometimes reaching a bit higher or lower.

Historical US Mortgage Rates

In the past 50 years, mortgage rates have fluctuated widely, from the peaks in the late 1970s and early 1980s of 18.00% to the valleys in the early 2010s of under 3.00%.

Factors Affecting Mortgage Rates in Virginia

Numerous factors influence mortgage rates in Virginia and nationwide. Some factors are economic, while others are entirely within the homebuyer’s control.

Economic Factors

• The Fed: The Federal Reserve exerts a profound influence on mortgage rates through its monetary policy. When the Fed raises the federal funds rate, borrowing costs generally increase.
• Inflation: As inflation rises, the purchasing power of money decreases, which typically prompts lenders to increase interest rates.
• Unemployment rate: A low unemployment rate generally indicates a strong economy, which can lead to higher demand for housing and higher mortgage rates.

Consumer Factors

• Credit score: A higher credit score indicates a lower risk of default, often qualifying borrowers for lower mortgage interest rates.
• Down payment: A larger down payment (e.g., 20% or more) reduces the loan-to-value ratio, often resulting in lower rates and avoiding PMI.
• Income and assets: Steady income and sufficient liquid assets reassure lenders of your ability to repay.
• Type of mortgage: Choosing between fixed-rate, ARMs, or government-backed loans will impact the initial and long-term rate offered.

Types of Mortgages Available in Virginia

Virginia offers a variety of mortgage types to meet the needs of different homebuyers.

Fixed-Rate Mortgage

Fixed-rate mortgages offer the security of a consistent interest rate throughout the life of the loan. They are commonly available in terms of 10 to 30 years.

Adjustable-Rate Mortgage (ARM)

ARMs initially offer a lower interest rate compared to fixed-rate loans. However, the interest rate can adjust periodically based on market conditions after an initial fixed period (e.g., 5 or 7 years).

FHA Loan

Backed by the Federal Housing Administration, FHA loans allow for lower credit scores and smaller down payments, making them a popular choice for those with limited financial resources.

VA Loans

VA loans are available to qualifying veterans and active-duty service members. They offer competitive rates and typically require no down payment.

USDA Loans

USDA loans assist low-income borrowers in purchasing homes in designated rural areas of Virginia, often with $0 down payment requirements.

Jumbo Loans

Jumbo loans are for homes that exceed the conforming loan limit. For 2026 in Virginia, this is generally $832,750, though it reaches $1,249,125 in high-cost areas like Northern Virginia.

Popular Places to Get a Mortgage in Virginia

Securing a mortgage often depends on choosing the right location. Virginia offers a range of affordable and high-end markets.

Least Expensive Locations

• Big Stone Gap: COLI 81; $156,012 average home value.
• Martinsville: COLI 81; $138,409 average home value.
• Lynchburg: COLI 94; $263,771 average home value.

Most Expensive Locations

• McLean: COLI 132; $1,299,500 average home value.
• Arlington: COLI 165; $798,217 average home value.
• Alexandria: COLI 133; $616,184 average home value.

Recommended: Best Affordable Places to Live in the U.S.

Tips for Securing a Competitive Mortgage Rate in Virginia

A competitive mortgage rate can save borrowers tens of thousands of dollars over the life of a loan. Follow these steps:

• Compare Interest Rates and Fees: Shop around with multiple lenders.
• Grow Your Credit Score: A higher score qualifies you for the best rates.
• Lower Your DTI Ratio: Keep your debt low relative to your income.
• Get Preapproved: This shows you are a serious buyer.

Virginia Mortgage Resources

Virginia offers several programs to assist homebuyers with down payment and closing cost assistance.

Down Payment Assistance

Programs like the Plus Second Mortgage and Down Payment Assistance Grant from Virginia Housing help borrowers cover their upfront costs. For eligibility and details, visit the Virginia Housing site.

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Refinancing Options in Virginia

Refinancing your mortgage can lower your rate or reduce payments. Options include FHA Streamline Refinances, VA Interest-Rate Reduction Refinance Loans, and conventional cash-out refinances.

Closing Costs, Taxes, and Fees in Virginia

Closing costs in Virginia range from 2% to 5% of the purchase price. These include origination fees, appraisal fees, title insurance, and recording fees.

The Takeaway

Virginia’s mortgage landscape offers a range of options. By staying informed about current mortgage rates and exploring assistance programs, you can make strategic decisions that align with your financial goals.

FAQ

What is a mortgage rate?

A mortgage rate is the interest rate charged by a lender on a home loan. It directly impacts your monthly payment.

Will mortgage rates drop in Virginia?

Predicting rate movements is challenging. Rates are influenced by various economic factors and typically follow national trends.

Will mortgage rates ever go back to normal?

Current rates are close to the 50-year historical average, meaning they are within “normal” levels today.

Will Virginia home prices ever drop?

Prices are influenced by supply and demand. While home prices can fluctuate, they have historically appreciated over the long term.

Is it a good time to buy a house in Virginia?

The best time depends on your personal financial situation and housing needs rather than timing market fluctuations perfectly.

How to lock in a mortgage rate?

You can work with a lender during the application process to lock in a rate for a set period, typically 30 to 60 days.

How do mortgage interest rates work?

Lenders set rates based on broad economic conditions (like the Fed rate) and individual risk factors (like your credit score).

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.